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GD · General Dynamics Corp

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$395.78 +2.82 (+0.72%) At close · Aug 14
Market Cap
$107.03B
Shares
270.43M
All earnings calls

Earnings call · FY2026 Q2

General Dynamics Q2 2026 Earnings Call

General Dynamics Q2 2026 Earnings Call

Concluded Jul 29, 2026 Audio replay
Jul 29, 2026 4:21 8 turns
Period
FY2026 Q2
Runtime
4:21
Sources
4 artifacts

Executive readout · one minute

What matters this quarter

General Dynamics reported Q2 2026 revenue of $14.1 billion (up 8.1%) and diluted EPS of $4.24 (up 13.4%), with operating margin expanding 40 basis points to 10.4% and a company-wide book-to-bill of 1.4-to-1 on $20.0 billion of orders.

GDIT pipeline 6 Technologies portfolio growth 6 Aerospace supply chain 5 Defense budget and continuing resolutions 4 Orders and cash 3

Management tone

Positive

Net tone +35 · low hedging

Grounding quotes
  • “I think both businesses are poised for some growth, particularly Mission Systems, as you recall, has gone through a transformation from a lot of legacy systems into investments in new programs and new products, and that is beginning to take off.”
  • “So we have handled in the technologies group, which are both fairly relative to our portfolio writ large, faster cycle businesses. We've managed the CRs pretty well, so I would expect it to be able to do so as long as they're not too extended.”
  • “they're able to keep up now, and our expectation is they will be in the future as well.”
  • “they've got a pretty robust pipeline at about 120 plus billion.”

Research coverage

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Key takeaways

What improved, and what deserves a closer read.

Constructive signals

  • Revenue $14.1B, up 8.1% year-over-year with growth across all four segments
  • Diluted EPS $4.24, up 13.4% versus prior year
  • Operating margin expanded 40 basis points to 10.4%, with double-digit revenue growth and noteworthy margin expansion in Aerospace and Marine Systems
  • Operating cash flow $1.9B, 162% of net earnings; paid $429M in dividends and reduced total debt by $498M
  • Company-wide book-to-bill of 1.4-to-1 on $20.0B in orders; defense segments 1.4-to-1 and Aerospace 1.5-to-1
  • Total estimated contract value of $186.9B, including $136.5B backlog and $50.4B estimated potential contract value

Risks & pressure points

  • Technologies portfolio is sensitive to extended continuing resolutions, and management expects it can manage CRs only as long as they are 'not too extended'
  • Technologies businesses are described as 'faster cycle' businesses, implying greater short-term funding risk
  • Forward-looking statements caveat that actual results may differ materially due to factors, risks and uncertainties that are difficult to predict

Quarter detail

How the reported period landed and where the business moved.

Capital returned

Dividend / share
$1.59
Full-screen source Call document